The Study Of The Value Relevance For The Available-for-Sale Securities

In this paper,the data of Available-for-sale Securities,Available-for-sale Debt Instruments,Available-for-sale Equity Instruments,Available-for-sale Equity Instruments measured at historical cost and Available-for-sale Equity Instruments measured at fair value of Chinese A-share listed companies from 2007 to 2016 was collected manually,to conducted the systematic research on the value relevance of the Available-for-sale Securities by studying the Available-for-sale Securities firstly,Available-for-sale Debt Instruments and Available-for-sale Equity Instruments secondly,and finally Available-for-sale Equity Instruments of different measurement methods.The results show that:(1)Available-for-sale Securities have a significant negative impact on the value relevance of accounting earnings,which will observably impair the connection between accounting earnings and the stock price.(2)Among the Available-for-sale Securities,Available-for-sale Equity Instruments are the key factors affecting the value relevance of earnings.The more Available-for-sale Equity Instruments held by companies,the weaker the value relevance of accounting earnings.and Available-for-sale Debt Instruments have no effect.(3)Among the Available-for-sale Equity Instruments,Available-for-sale Equity Instruments measured at historical cost are not value-related,and Available-for-sale Equity Instruments measured at fair value are the ultimate attribution of Available-for-sale Securities that significantly weaken the value relevance of accounting earnings.Therefore.under the current stage of China's capital market,the Available-for-sale Equity Instruments measured at fair value are not necessarily more relevant than historical cost measures.In addition,this article also finds that though Available-for-sale Securities,Available-for-sale Equity Instruments.and Available-for-sale Equity Instruments measured at fair value can impair the value relevance of accounting earnings markedly,but its value-related impact may be not timeliness due to market foreseeability.The main contributions of this study are as follows:(l)Extending the theoretical research results of value relevance.(2)This paper systematically studies the value relevance of Available-for-sale Securities and its subdivisions for the first time and proves that under the current stage of China's capital market,the Available-for-sale Equity Instruments measured at fair value are not necessarily more relevant than historical cost measures.(3)This paper can provide contrast and reference materials for the future research on the impact of the implementation of new standards on the value relevance of accounting data,and provide empirical evidence for the economic consequences of accounting standards and transaction cost theory.